Investment Management

Introduction |Financial Planning | Investment Management | Investing for Beginners | Review


In the United States a small percentage of the population is born into wealth. Many of those families have mastered the science of investing. They are able to increase their net worth by making their money work for them. Most people only think of the stock market when talking about investing, however there are several other options that will allow both conservative and aggressive risks to increase your wealth.

Flash Card Deck created by Shannon Anderson-Rush with GoConqr

Financial Planning

Financial planning helps you determine your short and long-term financial goals and create a balanced plan to meet those goals. Financial planning is important because tax planning, prudent spending and careful budgeting will help you keep more of your hard-earned cash.

Financial Plan

The main elements of a financial plan include a retirement strategy, a risk management plan, a long-term investment plan, a tax reduction strategy, and an estate plan.

Investment Management

Since its inception, the stock market has been one of the most powerful and consistent sources of wealth creation available. The stock market is where investors connect to buy and sell investments - most commonly, stocks, which are shares of ownership in a public company. Although stocks see more volatility than other assets, they have also averaged a real return of 6.7% per year between 1925 and 2014, compared to just 2.7% for bonds and 0.5% for cash. And over long periods of time, the extraordinary power of compounding can turn this differential into a wealth generation machine. For most people, the very mention of the stock market conjures up images of a frantic floor at a busy stock exchange, people in suits yelling "Buy!" or "Sell!", or even the sensational media coverage that can dominate the news cycle.

Assignment: Ten Reasons Why Financial Planning is Important Video Check

Directions: After watching and studying the video on Ten Reasons Why Financial Planning is Important, complete the Ten Reasons Why Financial Planning is Important video check in itsLearning. You will only have a few minutes to complete the check as it is expected that you have reviewed the material before beginning the check.

Investment Options

While stocks are certainly a popular options for investing your money, stocks are not the only game in town when it comes to investment options. A financial plan looks at different options and includes diversification. Diversification is the practice of spreading your investments around so that your exposure to any one type of asset is limited. This practice is designed to help reduce the volatility of your portfolio over time. If you have all of your "eggs in one basket" so to speak, it could be devastating and wipe you out financially as many people saw in the great depression of the 1920's and the housing market crash of 2008.

Rich Dad Poor Dad

Rule of 72

Benjamin Franklin said it best, "Money makes money. And the money that money makes, makes money." For many, predicting how your investments will perform over the long term can be difficult. After all, these returns may often seem abstract and distant. But being able to determine a time frame for expected growth is invaluable. Plan ahead and learn to use compound interest and the Rule of 72 to your financial benefit. The Rule of 72 determines how long an investment takes to double.

rule of 72

Assignment: Rule of 72 Worksheet

Directions: Let's practice using the Rule of 72 on some practice problems. Using the Rule of 72, answer the questions in the Rule of 72 worksheet in itsLearning.

Investing for Beginners

Stock markets were started when countries in the New World began trading with each other. While many pioneer merchants wanted to start huge businesses, this required substantial amounts of capital that no single merchant could raise alone. As a result, groups of investors pooled their savings and became business partners and co-owners with individual shares in their businesses to form joint-stock companies. Originated by the Dutch, joint-stock companies became a viable business model for many struggling businesses. In 1602, the Dutch East India Co. issued the first paper shares. This exchangeable medium allowed shareholders to conveniently buy, sell and trade their stock with other shareholders and investors.

The idea was so successful that the selling of shares spread to other maritime powers such as Portugal, Spain and France. Eventually, the practice found its way to England. Trade with the New World was big business so trading ventures were initiated. Other industries during the Industrial Revolution began using the idea as a way to generate start up capital. This influx of capital allowed for the discovery and development of the New World and for the growth of modern industrialized manufacturing.

To most people, the name Wall Street is synonymous with stock exchange. The market on Wall Street opened May 17, 1792 on the corner of Wall Street and Broadway. Twenty-four supply brokers signed the Buttonwood Agreement outside 68 Wall St. in New York, underneath a buttonwood tree. On March 8, 1817 the group renamed itself the New York Stock and Exchange Board and moved off the street into 40 Wall St. The organization that would define the world's economic future was born.

How the Stock Market Was Started & by Whom by Laura Bramble

Assignment: How to Invest in Stocks: A Beginner's Guide

Directions: If you've decided that you want to start investing in stocks, congratulations! There is no more reliable way to create long-term wealth than the stock market. Read the article How to Invest in Stocks: A Beginner's Guide by Matthew Frankel, CFP and then write a brief summary of the article in itsLearning.

Discussion: How Would You Invest Your Bingo Windfall?

Directions: In an effort to spend quality time with your Grandma, you take her to Bingo and you win the jackpot! Congratulations! Now that you know a little about investing, what would you do with it? Pick one stock to invest in and share your investment decision and relational with the class in the Bingo Windfall discussion board.

Assignment: Computing Stock Return

Directions: Review the formula for return on investment (ROI). Based on the information given, compute stock returns for the scenarios listed in itsLearning. You will need to multiply the number of shares when calculating the current profit, dividends, and purchase price.

Assignment: Investment Presentation

Directions: Using what you have learned in this module and information you have gotten from research, prepare a presentation of "Top Ten Investment Tips for the Beginning Investor" to present to your FBLA chapter. Your target audience is a group of teenagers who know very little about investing.


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Assignment: Guardians of the Galaxy Comic Questions

Directions: After reading the comic, answer the following questions in itsLearning:


If you are having problems viewing this page, opening videos, or accessing the URLs, the direct links are posted below. All assignments are submitted in itsLearning. If you have having problems, contact Mrs. Rush through the itsLearning email client.


Rule of 72 image: First Florida Credit Union

How the Stock Market Was Started & by Whom by Laura Bramble:,began%20trading%20with%20each%20other.&targetText=Originated%20by%20the%20Dutch%2C%20joint,issued%20the%20first%20paper%20shares.

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